CONSUMER SPENDING:

Incomes, discounts provide momentum

WASHINGTON — Consumers increased their spending in June as higher incomes helped them take advantage of discounts on autos, showing the economy gained momentum heading into the third quarter.

The Commerce Department said Tuesday that spending rose 0.8 percent after being flat in May while personal incomes rose 0.5 percent, more than twice the gain in May. The gains were the biggest since April.

Strong consumer demand gave companies the confidence to order more machines and computers. The gain in factory orders followed a revised 3.6 percent increase in May that was larger than first reported.

A gauge tied to spending patterns, which is Federal Reserve policymakers' preferred measure for tracking inflation, was unchanged in June.